Richard Bookstaber, former risk manager at Ziff Brothers International and Moore Capital Management, has been named as a senior policy advisor by the Securities and Exchange Commission. He joins the S.E.C. Division of Risk, Strategy and Financial Innovation.
The S.E.C. also announced two other appointments. Adam Glass has been appointed a Counsel to the Director. Glass comes to the SEC from Linklaters LLP, where he founded its Structured Finance and Derivatives Practice. Bruce Kraus has been appointed a Counsel to the Director. Kraus practiced corporate and securities law for more than 20 years at Willkie Farr & Gallagher LLP.
Bookstaber also wrote a book in 2007, A Demon of Our Own Design. According to the New York Times, “Mr. Bookstaber is one of Wall Street′s ′rocket scientists′mathematicians lured from academia to help create both complex financial instruments and new computer models for making investing decisions. In the book, he makes a simple point: The turmoil in the financial markets today comes less from changes in the economyeconomic growth, for example, is half as volatile as it was 50 years agoand more from some of the financial instruments (derivatives) that were designed to control risk.”
“I am pleased that Adam, Bruce, and Rick have agreed to come to the Commission,” said Henry Hu, Director of the SEC’s Division of Risk, Strategy, and Financial Innovation. “The role of the SEC has never been more critical. How modern capital markets, derivatives and structured products, and systemic risk are addressed today may well affect the nation for generations to come. Adam, Bruce, and Rick bring energy, expertise, and creativity. They will be important in this Division’s efforts to offer analysis that integrates economic, finance, and legal disciplines, with full appreciation of the complexities of today’s world. They will add to the new Division’s growing roster and give us a deeper bench to draw from as we fulfill our mission of protecting investors.”
Dr. Bookstaber said, “These times present a rare opportunity for fundamental financial reform. I am honored to be counted as part of this great team and am committed to the goals of investor protection and control of systemic risk.”
Mr. Glass said, “I feel privileged to have been asked by Professor Hu to join this new Division. The SEC’s work could not be more important at this critical time. I much look forward to playing a role in identifying and responding to new risks and trends in today’s financial markets.”
Mr. Kraus said, “I am honored by Professor Hu’s invitation to join him alongside experts in economics and finance in these unprecedented times. The challenges present new mandates and fresh opportunities for positive change, and I look forward to assisting him and all the Risk Fin professionals in every way I can.”